Toyota, GM file objections in Reagor-Dykes bid process

Tuesday, November 20th 2018, 4:29 PM CST

Updated:

Wednesday, November 21st 2018, 10:25 AM CST

Several entities connected to the Reagor-Dykes Auto Group have filed objections to a filing made a few weeks ago, titled the "notice of cure amounts related to unexpired leases and executory contracts and deadline to respond".

Under the bid process, Reagor-Dykes must identify contracts and unexpired leases that may be assigned with the proposed sale of the auto group.

Toyota objection

Gulf States Toyota objects to the possibility of its dealer agreement for the Plainview dealership transferring to a stalking horse bidder in a few weeks.

According to Toyota's filing, Reagor-Dykes has defaulted on its agreement. "First and foremost, the term of the Toyota Dealer Agreement already expired on its own terms effective November 8, 2018 (irrespective of any breach), and so there is no Toyota franchise for Debtor Plainview to assume, no Toyota franchise for Debtor Plainview to sell or assign, and no Toyota franchise for any third party to purchase or receive assignment."

Gulf States Toyota also states the Reagor-Dykes Toyota dealership is not operating daily as required under its agreement. "In fact, Debtor Plainview has not sold a single new Toyota vehicle in the last 111 days", according to the filing. This is roughly how long it's been since Reagor-Dykes file for bankruptcy.

General Motors objection

General Motors filed a similar objection, regarding Reagor-Dykes Chevrolet dealerships in Floydada and Snyder. The Snyder location is among RDAG companies that filed for bankruptcy more recently, Nov. 2.

GM argues, under an earlier compromise, it would be given adequate time to review bidders seeking to purchase the Reagor-Dykes Auto Group. Thus far, it has not received information from any bidders.

Additionally, GM argues the document listing unexpired leases and and contracts does not contain needed specifics for agreements with General Motors, LLC.

This is Gulf States Toyota's filing

This is General Motors' objection

This is the notice of cure amounts related to unexpired leases and executory contracts and deadline to respond